<PAGE> 1
===============================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED
AUGUST 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-13616
INTERVOICE, INC.
(Exact name of registrant as specified in its charter)
TEXAS 75-1927578
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
17811 WATERVIEW PARKWAY DALLAS, TX 75252
(Address of principal executive offices)
972-454-8000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
The Registrant had 16,200,738 shares of common stock, no par value per
share, outstanding as of the close of the period covered by this report.
===============================================================================
<PAGE> 2
PART I. FINANCIAL INFORMATION
InterVoice, Inc.
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
August 31, February 28,
ASSETS 1997 1997
------------- -------------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 20,227,697 $ 24,162,024
Accounts and notes receivable, net of allowance
for doubtful accounts of $243,031 in fiscal 1998
and $250,950 in fiscal 1997 33,893,384 33,506,747
Inventory 12,846,247 12,107,738
Prepaid expenses and other assets 1,373,911 3,833,248
Deferred taxes 1,419,495 1,419,495
------------- -------------
69,760,734 75,029,252
PROPERTY AND EQUIPMENT
Building 16,085,636 16,140,989
Computer equipment and software 23,348,979 20,663,578
Furniture, fixtures and other 3,376,114 5,322,288
Service equipment 2,346,396 1,975,825
------------- -------------
45,157,125 44,102,680
Less allowance for depreciation 12,511,784 13,676,956
------------- -------------
32,645,341 30,425,724
OTHER ASSETS
Other assets, net 5,116,108 3,723,533
------------- -------------
$ 107,522,183 $ 109,178,509
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 11,062,186 $ 12,893,725
Customer deposits 2,319,524 3,403,739
Deferred income 5,006,825 4,995,231
Income taxes payable 61,807 --
------------- -------------
18,450,342 21,292,695
DEFERRED TAXES 1,695,294 1,695,294
CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, $100 par value--2,000,000
shares authorized: none issued
Common Stock, no par value, at nominal
assigned value--62,000,000 shares
authorized: 19,381,402 issued,
16,200,738 outstanding in 1998
and 19,353,973 issued, 16,353,973
outstanding in 1997 9,681 9,667
Additional paid-in capital 43,236,627 43,028,780
Unearned compensation (205,412) (493,634)
Treasury stock - at cost (25,800,344) (24,003,245)
Retained earnings 70,135,995 67,648,952
------------- -------------
87,376,547 86,190,520
------------- -------------
$ 107,522,183 $ 109,178,509
============= =============
</TABLE>
See notes to consolidated financial statements.
1
<PAGE> 3
InterVoice, Inc.
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------- -------------------------
August 31, August 31, August 31, August 31,
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Sales $29,276,334 $27,300,022 $54,018,617 $52,859,523
Cost of goods sold 11,481,455 10,114,594 22,896,334 19,263,336
----------- ----------- ----------- -----------
Gross Margin 17,794,879 17,185,428 31,122,283 33,596,187
----------- ----------- ----------- -----------
Research and development expenses 3,504,588 2,869,586 6,502,605 5,613,633
Selling, general and administrative
expenses 11,289,794 8,156,878 21,390,992 16,026,541
----------- ----------- ----------- -----------
Income from operations 3,000,497 6,158,964 3,228,686 11,956,013
Other income 135,710 171,076 324,233 357,878
----------- ----------- ----------- -----------
Income before income taxes 3,136,207 6,330,040 3,552,919 12,313,891
Income taxes 920,026 2,058,986 1,065,876 4,063,576
----------- ----------- ----------- -----------
Net income $ 2,216,181 $ 4,271,054 $ 2,487,043 $ 8,250,315
=========== =========== =========== ===========
Net Income per common and
common equivalent share $ .14 $ .26 $ .15 $ .49
=========== =========== =========== ===========
Weighted average number of common
and common equivalent shares 16,297,674 16,599,084 16,357,842 16,754,025
=========== =========== =========== ===========
</TABLE>
2
<PAGE> 4
InterVoice, Inc.
Consolidated Statements of Changes in Stockholders' Equity
(Unaudited)
<TABLE>
<CAPTION>
Common Stock Additional
--------------------- Paid-in Unearned Treasury Retained
Shares Amount Capital Compensation Stock Earnings Total
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at February 28, 1997 16,353,973 $ 9,667 $ 43,028,780 $ (493,634) $(24,003,245) $ 67,648,952 $ 86,190,520
Purchase of treasury
stock (180,664) -- -- -- (1,797,099) -- (1,797,099)
Exercise of stock
options 28,353 14 207,847 -- - - -- 207,861
Issuance of restricted
stock, net of
forfeitures (924) -- -- 288,222 - - -- 288,222
Net Income -- -- -- -- -- 2,487,043 2,487,043
---------- ------- ------------ ------------ ------------ ------------ ------------
Balance at August 31, 1997 16,200,738 $ 9,681 $ 43,236,627 $ (205,412) $(25,800,344) $ 70,135,995 $ 87,376,547
========== ======= ============ ============ ============ ============ ============
</TABLE>
3
<PAGE> 5
InterVoice, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
---------------------------- ----------------------------
August 31, August 31, August 31, August 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income $ 2,216,181 $ 4,271,054 $ 2,487,043 $ 8,250,315
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization 2,197,672 1,138,431 4,219,456 2,230,058
Changes in operating assets
and liabilities: (1,865,327) (4,701,467) (1,084,279) (7,429,907)
------------ ------------ ------------ ------------
NET CASH FROM OPERATIONS 2,548,526 708,018 5,622,220 3,050,466
INVESTING ACTIVITIES
Purchase of property
and equipment (3,033,852) (1,091,902) (6,122,153) (2,178,465)
Purchased software (687,757) (1,208,120) (1,845,156) (2,070,050)
Decrease in notes
receivable -- 26,953 -- 40,412
------------ ------------ ------------ ------------
(3,721,609) (2,273,069) (7,967,309) (4,208,103)
FINANCING ACTIVITIES
Purchase of Treasury Stock -- -- (1,797,099) --
Exercise of stock options 127,673 295,219 207,861 1,721,859
------------ ------------ ------------ ------------
127,673 295,219 (1,589,238) 1,721,859
------------ ------------ ------------ ------------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (1,045,410) (1,269,832) (3,934,327) 564,222
Cash and cash equivalents,
beginning of period 21,273,107 21,273,107 24,162,024 23,573,976
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 20,227,697 $ 20,003,275 $ 20,227,697 $ 24,138,198
============ ============ ============ ============
</TABLE>
4
<PAGE> 6
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SIX MONTHS ENDED AUGUST 31, 1997
NOTE A -- BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information. The
Balance Sheet at February 28, 1997 has been derived from audited financial
statements at that date. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation of the unaudited August 31, 1997 and 1996 financial statements
have been included. Operating results for the six month period ended August 31,
1997 are not necessarily indicative of the results that may be expected for the
year ending February 28, 1998 as they may be affected by a number of factors,
including the timing and ultimate receipt of orders from significant customers
which continue to constitute a large portion of the Company's sales, the sales
channel mix of products sold, and changes in general economic conditions, any
of which could have an adverse effect on operations.
NOTE B -- EARNINGS PER SHARE
Earnings per share are computed based on the sum of the average outstanding
common shares and common equivalent shares. Common equivalent shares assume the
exercise of all dilutive stock options using the treasury stock method. Primary
and fully diluted earnings per share are not materially different for the
periods presented.
On February 28, 1998, the Company will be required to adopt Statement No. 128
"Earnings per Share" issued by the Financial Accounting Standards Board. Under
a new method of computing primary earnings per share, the dilutive effect of
stock options will be excluded. At the time of adoption, the Company will
compute earnings per share under the new method and will restate all prior
periods.
NOTE C -- CONTINGENCIES
The Company is subject to certain legal proceedings and claims that arise in
the ordinary course of its business. In the opinion of management, based on
discussions with and advice of legal counsel, the amount of ultimate liability
with respect to these actions will not materially affect the consolidated
results of operations or financial condition of the Company.
5
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
SALES. Sales in the first six months and second quarter of fiscal 1998
increased approximately $1.2 million and $2.0 million, respectively, or 2% and
7%, respectively, when compared to the same periods of fiscal 1997. These
increases were due primarily to increased domestic customer premise equipment
(CPE) sales and international telecommunications (Telco) sales, particularly to
Latin American telecommunications companies. Domestic CPE sales for the first
six months and second quarter of fiscal 1998 constituted 60% and 57% of the
Company's total sales, respectively, and increased 13% and 9%, respectively,
when compared to the same periods of fiscal 1997.
Worldwide Telco sales for the second quarter of fiscal 1998 constituted 21% of
the Company's total sales and increased 13% when compared to the same period of
fiscal 1997. Even though worldwide Telco sales improved during the second
quarter, such sales decreased 11% in the first six months of fiscal 1998, as
compared to the same period of fiscal 1997, due to lower sales in the first
quarter. As a result, worldwide Telco sales constituted 17% of the Company's
total total sales for the first six months of fiscal 1998 versus 19% in the
same period of fiscal 1997. Sales to international Telco customers constituted
77% and 86% of the Company's worldwide telecommunications sales during the
first six months and second quarter of fiscal 1998, respectively. The Company
believes that some domestic telecommunications companies have temporarily
delayed their implementation of call automation solutions while they further
evaluate marketing investment strategies in the light of new opportunities
resulting from deregulation.
International CPE sales and service revenue constituted the remaining 23% and
22% of the Company's total sales during the first six months and second quarter
of fiscal 1998, respectively. While no customer accounted for 10% of the
Company's total sales during the first six months of fiscal 1998, a sale
through one of the Company's domestic distributors constituted 15% of the
Company's total sales during the second quarter of fiscal 1998.
The Financial Accounting Standards Board has approved the American Institute of
Certified Public Accountants Statement of Position (SOP) on software revenue
recognition which will be effective beginning in fiscal 1999. The SOP will
govern the recognition of revenue on sales which require a high degree of
software customization, which currently accounts for approximately 30% of the
Company's total sales. While at this time the Company cannot predict or
quantify the impact of the new SOP, it may delay the recognition of revenue on
certain sales beginning in the first quarter of fiscal 1999.
COST OF GOODS SOLD. Cost of goods sold as a percentage of sales
increased to 42% and 39% in the first six months and the second quarter of
fiscal 1998, compared to 36% and 37%, respectively, in the same periods of
fiscal 1997. This was the result of less than anticipated sales in the first
six months and second quarter of fiscal 1998 and the Company's continued
investment in applications engineering and customer service resources to pursue
opportunities in both the CPE and Telco markets.
RESEARCH AND DEVELOPMENT. Research and development expenses in the
first six months and second quarter of fiscal 1998 increased approximately $0.9
million and approximately $0.6 million, or 16% and 22%, over the same periods
of fiscal 1997. Such expenses in the first six months and second quarter of
fiscal 1998 increased to 12% of the Company's total sales, versus 11% in the
same periods of fiscal 1997. Research and development expenses in the first six
months and second quarter of fiscal 1998 included porting the Company's
InterSoft core software to the UNIX and Windows NT operating systems;
developing computer platform independent voice automation hardware and
software; and the development of VisualConnect (the ability to communicate with
OneVoice Systems via the Internet) and InVision (the Company's next generation
custom application development tool). The Company continued development of its
OneVoice Software Agent Platform including OneVoice Systems (the Company's
Interactive Voice Response (IVR) system), OneVoice 5000 (the Company's high
density IVR system), InterDial (the Company's outbound predictive dialer
system), OneLink (a digital interface for analog switches), and digital
VocalCard software and hardware functionality. Expenditures also
6
<PAGE> 8
were made for the completion of the Company's "InControl" product line
including the NSP5000 platform, which addresses the worldwide Telco market.
SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and
administrative expenses increased approximately $5.4 million and approximately
$3.1 million in the first six months and second quarter of fiscal 1998,
respectively, or 33% and 38%, respectively, as compared to fiscal 1997. As a
percentage of the Company's total sales, selling, general and administrative
expenses in the first six months and second quarter of fiscal 1998 increased to
40% and 39%, respectively. This was the result of the Company's continued
investments in hiring and training new and existing sales, service and support
personnel and in marketing and advertising programs worldwide to pursue
opportunities in both the CPE and Telco markets, despite less than anticipated
sales.
OTHER INCOME. Other income during the first six months and second
quarter of fiscal 1998 were comparable with the same periods of fiscal 1997.
INCOME FROM OPERATIONS. Operating income during the first six months
and second quarter of fiscal 1998 of approximately $3.2 million and $3.0
million, respectively, declined 73% and 52%, respectively, from the same
periods in the previous year. Despite less than anticipated sales, the Company
increased its investments in sales, marketing, application engineering and
research and development in order to continue to pursue opportunities in both
the CPE and Telco markets. Net income during the first six months and second
quarter of fiscal 1998 of approximately $2.5 million and $2.2 million,
respectively, declined 70% and 49%, respectively, from the same periods in the
previous year for the same reasons as operating income. The Company is
committed to undertaking measures to control expenses, particularly selling,
general and administrative expenses. These expense control measures should
begin to reduce the Company's ratio of expenses to sales in future quarters,
assuming sales in future quarters remain at or above second quarter sales, and
further assuming that expense levels are not unduly influenced by unusually
high one time expenses related to litigation matters, any potential mergers or
acquisitions, any major research and development efforts which are not
currently contemplated but which become necessary in light of market or
strategic requirements, and any other future contingencies which are not
currently contemplated by the Company.
LIQUIDITY AND CAPITAL RESOURCES. At August 31, 1997, the Company had
cash reserves of approximately $20.2 million. The Company generated positive
net cash from operations of approximately $5.6 million and $2.5 million during
the first six months and second quarter of fiscal 1998, respectively. Investing
activities (consisting of the acquisition and purchase of fixed assets and
third party software) and financing activities (consisting primarily of the
repurchase of shares of the Company's common stock) together totaled uses of
cash of approximately $9.5 million and $3.6 million during the first six months
and second quarter of fiscal 1998, respectively. Investment activities totaling
approximately $8.0 million and $3.6 million during the first six months and
second quarter of fiscal 1998 included computing hardware and software to
update the Company's enterprise systems and to provide the information systems
infrastructure needed to support the Company's worldwide growth. Expenditures
were also made to acquire third party developed software to be integrated into
the Company's InterSoft software to allow the Company to offer its customers
greater functionality and to ensure the Company's products comply with an
increasing variety of hardware and software technologies and standards.
Financing activities during the first quarter of fiscal 1998 included the
repurchase of 180,664 shares of the Company's common stock at a cost of
approximately $1.8 million pursuant to an authorization by its Board of
Directors to repurchase up to 1,000,000 shares. The Company believes that
market conditions made such shares of value to its shareholders. No shares were
repurchased during the second quarter of fiscal 1998. As a result of these
financing and investing activities, the Company experienced a reduction of its
cash reserves of approximately $3.9 million and $1.0 million during the first
six months and second quarter of fiscal 1998, respectively. The Company reviews
share repurchase and acquisition opportunities from time to time and believes
it has access to the financial resources necessary to pursue attractive
opportunities as they arise. Subsequent to the end of the second quarter of
fiscal 1998 and as of October 1, 1997, the Company repurchased an additional
819,336 shares of the Company's stock at a cost of $8,217,780 to complete the
1,000,000 share repurchase amortization mentioned above. On October 2, the
Company's Board of Directors authorized the repurchase of an additional
1,000,000 shares of the Company's stock. Pursuant to this additional
authorization and as of October 14, 1997, the Company has repurchased 160,000
shares of the Company's stock, at a
7
<PAGE> 9
cost of $1,620,625. The Company believes its cash reserves and internally
generated cash flow will be sufficient to meet its operating cash requirements
for the foreseeable future.
DISCLOSURES REGARDING FORWARD-LOOKING STATEMENTS. This report on Form
10-Q includes "forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements other than statements of
historical facts included in this Form 10-Q, including, without limitation,
statements contained in this "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and under "Notes to Unaudited Financial
Statements" and "Legal Proceedings" located elsewhere herein regarding the
Company's financial position, business strategy, plans and objectives of
management of the Company for future operations, industry conditions and
litigation, are forward-looking statements. Although the Company believes that
the expectations reflected in such forward-looking statements are reasonable,
it can give no assurance that such expectations will prove to be correct. In
addition to important factors described elsewhere in this report, the following
significant factors, among others, sometimes have affected, and in the future
could affect, the Company's actual results and could cause such results during
fiscal 1998, and beyond, to differ materially from those expressed in any
forward-looking statements made by or on behalf of the Company:
o The Company faces intense competition based on product capabilities and
experiences ever-increasing demands from its actual and prospective
customers for its products to be compatible with a variety of rapidly
proliferating computing, telephony and computer networking technologies
and standards. The ultimate success of the Company's products is
dependent, to a large degree, on the Company allocating its resources to
developing and improving products compatible with those technologies,
standards and functionalities that ultimately become widely accepted by
the Company's actual and prospective customers. The Company's success is
also dependent, to a large degree, on the Company's ability to implement
arrangements with other vendors with complementary product offerings to
provide actual and prospective customers greater functionality and to
ensure that the Company's products are compatible with the increased
variety of technologies and standards.
o Continued availability of suitable non-proprietary computing platforms
and system operating software that are compatible with the Company's
products.
o Certain of the components for the Company's products are available from
limited suppliers. The Company's operating results could be adversely
affected if the Company were unable to obtain such components in the
future.
o Increasing litigation with respect to the enforcement of patents,
copyrights and other intellectual property.
o The ability of the Company to retain its customer base and, in
particular, its more significant customers (such as Siemens AG, an
InterVoice distributor, which accounted for over ten percent of the
Company's total sales during fiscal 1997 and MCI Telecommunications, which
accounted for over ten percent of the Company's total sales during fiscal
1996 and 1995), since such customers generally are not contractually
obligated to place further orders with the Company.
o Legislative and administrative changes and, in particular, changes
affecting the telecommunications industry, such as the recently enacted
Telecommunications Act of 1996. While many industry analysts expect the
Telecommunications Act of 1996 ultimately to result in at least a
temporary surge in the procurement of telecommunications equipment and
related software and other products, there is no assurance that the
Company can estimate with sufficient accuracy those products which will
ultimately be purchased, the timing of any such purchases or the
quantities to be purchased.
o Risks involved in the Company's international distribution and sales of
its products, including unexpected changes in regulatory requirements,
unexpected changes in exchange rates, the difficulty and expense of
maintaining foreign offices and distribution channels, tariffs and other
barriers to trade, difficulty in protecting intellectual property rights,
and foreign governmental regulations that may limit or restrict the sales
of call automation systems. Additionally,
8
<PAGE> 10
changes in foreign credit markets and currency exchange rates may result
in requests by many international customers for extended payment terms and
may have an adverse impact on the Company's cash flow and its level of
accounts receivable.
o The quantity and size of large sales (sales valued at approximately $1
million or more) during any fiscal quarter, which can cause wide
variations in the Company's sales and earnings on a quarter to quarter
basis.
o Ability of the Company to properly estimate costs under fixed price
contracts in developing application software and otherwise tailoring its
systems to customer-specific requests.
o The Company's ability to hire and retain, within the Company's
compensation parameters, qualified technical talent and outside
contractors in highly competitive markets for the services of such
personnel.
o Mergers and acquisitions between companies in the telecommunications
industry which could result in fewer companies purchasing the Company's
products for Telco applications, and /or delay such purchases by companies
that are in the process of reviewing their strategic alternatives in light
of a merger or acquisition.
o Extreme price and volume trading volatility in the U.S. stock market,
which has had a substantial effect on the market prices of securities of
many high technology companies, frequently for reasons other than the
operating performance of such companies. These broad market fluctuations
could adversely affect the market price of the Company's common stock.
9
<PAGE> 11
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of shareholders of the Company was held at 10:00 a.m., local
time, on Thursday, July 24, 1997 in Dallas, Texas.
For/Against and Broker Non Votes
Proxies were solicited by the Board of Directors of the Company pursuant to
Regulation 14A under the Securities Exchange Act of 1934. There was no
solicitation in opposition to the Board of Directors nominees as listed in the
proxy statement and all such nominees were duly elected. The following persons
are the nominees of the Board of Directors who were elected as directors at the
annual meeting: Daniel D. Hammond, Michael W. Barker, Joseph J. Pietropaolo,
George C. Platt, Grant A. Dove and David W. Brandenburg. The number of votes
cast for the election of each of the nomines for director, and the number of
abstentions, were as follows: 13,346,771 votes for the election of Daniel D.
Hammond, with 226,732 abstentions; 13,343,719 votes for the election of Michael
W. Barker, with 228,784 abstentions; 13,451,811 votes for the election of
Joseph J. Pietropaolo, with 120,892 abstentions; 13,453,611 votes for the
election of George C. Platt, with 118,892 abstentions; 13,452,111 votes for the
eleciton of Grant A. Dove, with 120,392 abstentions; and 13,449,687 votes for
the election of David W. Brandenburg, with 122,836 abstentions. No votes were
cast against the eleciton of any nominee for director.
10
<PAGE> 12
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTERVOICE, INC.
Date: 10/15/97 By: /s/ ROB-ROY J. GRAHAM
-----------------------------
Rob-Roy J. Graham
Chief Financial Officer
(Chief Accounting Officer)
11
<PAGE> 13
INTERVOICE, INC.
INDEX TO EXHIBITS
EXHIBIT
NUMBER EXHIBIT
- ------- -------
27.1 Financial Data Schedule
Furnished upon request
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-28-1998
<PERIOD-START> MAR-01-1997
<PERIOD-END> AUG-31-1997
<CASH> 20,227,697
<SECURITIES> 0
<RECEIVABLES> 33,893,384
<ALLOWANCES> 243,031
<INVENTORY> 12,846,247
<CURRENT-ASSETS> 69,760,734
<PP&E> 45,157,125
<DEPRECIATION> 12,511,784
<TOTAL-ASSETS> 107,522,183
<CURRENT-LIABILITIES> 18,450,342
<BONDS> 0
0
0
<COMMON> 9,681
<OTHER-SE> 87,366,866
<TOTAL-LIABILITY-AND-EQUITY> 107,522,183
<SALES> 54,018,617
<TOTAL-REVENUES> 54,018,617
<CGS> 22,896,334
<TOTAL-COSTS> 22,896,334
<OTHER-EXPENSES> 0
<LOSS-PROVISION> (8,510)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,552,919
<INCOME-TAX> 1,065,876
<INCOME-CONTINUING> 2,487,043
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,487,043
<EPS-PRIMARY> 0.15
<EPS-DILUTED> 0.15
</TABLE>
